Politico: Iceland could become net contributor to EU budget UPDATED

Iceland, as a highly developed economy, could become a net contributor to the EU budget, Politico reports, citing an EU official.

The official said the country's economy could also help offset the financial costs of admitting Montenegro, which would rank among the bloc's poorest member states.

Both countries could join the European Union together in 2028 if Icelanders vote in favour of resuming accession talks at a referendum later this month.

According to the report, European Commissioner for Enlargement Marta Kos described Iceland as a "special case" because it participated in the European Economic Area (EEA) and the Schengen Area.

She said accession negotiations could take "one to two years" if Icelanders approve the resumption of talks in the August 29 referendum.

Politico noted that such a timeline would place Iceland on a similar track to Montenegro, which has already closed more than half of the EU's 33 negotiating chapters and is aiming to join the bloc by 2028.

Montenegrin Minister for European Affairs Maïda Gorčević said Podgorica would welcome linking its accession bid with Iceland's and joining the EU at the same time.

Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir also said simultaneous accession was entirely possible, depending on the progress of negotiations.

With a population of around 400,000, Iceland would become the EU's second least-populous member state after Malta, which has about 590,000 inhabitants.

According to Politico, simultaneous accessions have precedent in the EU.

Spain and Portugal joined together in 1986, while Bulgaria and Romania entered the bloc in 2007 under a single accession treaty.

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Iceland has urged the European Commission not to interfere in a referendum scheduled for August 29 on whether to resume negotiations on joining the European Union, Euractiv reports, citing sources.

The sources said Icelandic authorities asked the European Commission to stay out of the upcoming vote, stressing that foreign interference in the referendum would be unacceptable.

Earlier, Guðrún Hafsteinsdóttir, leader of Iceland's Independence Party, also called on European politicians not to interfere in the referendum.

Iceland has already set a key condition for any future EU accession agreement, insisting that the country retain control over its fisheries.

The country first applied for EU membership in 2009 during the global financial crisis.

In 2013, the Icelandic government suspended accession negotiations after the economy had stabilised, having completed 11 of the 33 chapters of the accession process.

In 2015, Reykjavík asked Brussels to stop treating Iceland as an EU candidate country.

Despite halting its membership bid, Iceland remains closely integrated with the bloc through its participation in the European Economic Area (EEA) and the Schengen Agreement.

By Bakhtiyar Abbasov